The semi-annual reports of listed companies are being released one after another.
On July 4 this year , Horn Automotive, which is mainly engaged in automotive electronics, was officially listed on the GEM . The company's main products are automotive intelligent driving perception systems, including on-board camera systems, on-board video driving recording systems, and ultrasonic radar systems.
Compared with the current domestic mainstream intelligent driving solution companies, Horn Automotive's main business and mass production delivery projects are still mainly focused on traditional automotive electronics, sensors and other hardware and system products.
In addition, in recent years, the company has begun to extend its low-speed assisted driving system business, including AVM (panoramic view) controllers, APS controllers and high-performance domain controllers, to realize functions such as automatic parking, valet parking, and low-speed automatic driving.
Data shows that from 2020 to 2022, Haon Automobile and Electric achieved operating income of 719 million yuan, 981 million yuan, and 1.079 billion yuan respectively; net profits attributable to the parent company were 68 million yuan, 97 million yuan, and 105 million yuan respectively. During the reporting period, the compound growth rates of the company's revenue and net profit attributable to the parent were 22.52% and 24.45% respectively.
As of June 1, 2023, Horn Automotive has obtained designated development projects from 33 car companies, including new car manufacturing forces and new energy car companies such as BYD, Ideal, Xpeng and Jinkang. The project involves ultrasonic radar systems , DMS camera, OMS camera and 360 panoramic system, etc.
On August 29, Horn Automotive officially disclosed its first semi-annual report after listing. Data showed that from January to June this year, it achieved revenue of 515 million yuan, a slight increase of 2.99% year-on-year; the net profit attributable to shareholders of the listed company was 4558.48 million, down 10.49% year-on-year.
Horn Automotive and Electricity Semi-annual Report 2023
In terms of specific business, the revenue of vehicle video driving recording systems (driving recorders) in the first half of the year fell by 34.04% year-on-year . The main customers are still Dongfeng Nissan and Geely.
In fact, according to the prospectus of Horn Automotive and Electric, the demand for the company's in-vehicle video driving recording system products has declined in 2022, resulting in a decline in sales of this product.
Public data shows that from January 1, 2022, the mandatory national standard "Automotive Event Data Recording System" (GB39732-2020) will be officially implemented; at the same time, regulations allow car companies to choose in-vehicle video recording systems (DVR) to meet compliance requirements.
DVR is more expensive than EDR (integrated into the airbag controller through software) in terms of cost and installation complexity, which has led to most car companies being more inclined to choose EDR.
However, the driving record (function) pre-installation market basically maintains a steady growth trend.
Monitoring data from the Gaogong Intelligent Automotive Research Institute shows that in the Chinese market (excluding import and export), 4.3739 million sets of standard driving recording systems (visual type) for passenger cars will be delivered in 2022, a year-on-year increase of 43.21%; while from January to June 2023 The year-on-year growth rate of monthly pre-loading was 41.42%.
However, surround view and ADAS forward hardware multiplexing continue to have an impact on the traditional independent driving recorder system market. For example, an 8-megapixel ADAS front-facing camera (with an increased field of view to 120 degrees) can replace (reuse) the front-mounted driving recorder function.
As for Dongfeng Nissan, the main customer of Horn Automobile and Electric, its sales in the first half of this year fell by 28.02% year-on-year. At the same time, sales in 2022 fell below 1 million vehicles for the first time, falling by 21.4% year-on-year.
In addition, as the largest business segment, Horn Automotive's automotive camera system product line mainly includes traditional reversing cameras (main customers include Dongfeng Nissan, Volkswagen, Geely, etc.) and 360 panoramic surround view. Revenue in the first half of the year dropped slightly by 0.10%. .
From the perspective of front-end installation data, the traditional single rearview camera assist system (RVC) market is in a shrinking cycle. From January to June 2023, the installation volume of front-end installations fell by 7.31% year-on-year; in comparison, the installation volume of 360 panoramic surround-view front-end installations fell by 7.31% year-on-year. A year-on-year increase of 40.47%.
However, compared with its peers such as Hikvision, Desay SV, and Zhihua Technology, Horn Automotive's 360 panoramic view business is still in its early growth stage, and it will take time for large-scale vehicle delivery.
In terms of ultrasonic radar system business, Horn Automotive achieved a revenue growth of 45.23% in the first half of the year, making it the only business segment to achieve positive growth among the three main businesses. Since last year, the company's products have been mass-produced by new customers such as Ideal and Xiaopeng.
Judging from the pre-installation data, from January to June this year, the number of APA pre-installations installed on passenger cars was 1.5237 million units, a year-on-year increase of 25.27%; the total number of ultrasonic radars (including reversing) installed was 55.3816 million units, a year-on-year increase of 14.70%.
Currently, in terms of terminal prices, compared to cameras, millimeter-wave radar, and lidar, the price of ultrasonic radar has basically remained relatively stable in recent years.
With the launch of the all-in-one parking and parking market, traditional APA solutions are also facing changes such as software and hardware decoupling, and single ECUs are integrated into domain controllers, which puts considerable pressure on enterprises' continued R&D investment.
Previously, Horn Automotive pointed out in its prospectus that on the basis of existing technologies, it has actively laid out research and development work on new technologies such as new ultrasonic sensing, visual sensing and millimeter wave sensing, and has invested a certain amount of funds, personnel and technology. Invest.
Data show that in the first half of this year, Horn Automotive's R&D investment increased by 29.02% year-on-year, accounting for 11.07% of the current revenue; this number is not conspicuous in the industry.
Taking Jingwei Hengrun (the domestic supplier with the largest ADAS mass production share) as an example, it achieved operating income of 1.6972477 million yuan in the first half of this year, an increase of only 1.61% over the same period last year; the net profit attributable to shareholders of the listed company was -89.0544 million yuan, A year-on-year decrease of 188.92%.
Among them, there are 4,123 R&D personnel and technical personnel, a year-on-year increase of 36.98%; the expensed R&D investment in the first half of the year was 425.4797 million yuan, a year-on-year increase of 52.46%, accounting for 25.04% of the revenue.
At the same time, as the number of designated projects on hand increases, for most suppliers, the upfront costs of continuous technology investment and project development are rising rapidly, putting considerable pressure on cash flow.
Data show that in the first half of this year, the net cash flow generated by Haon Automobile and Electric's operating activities turned negative (-5,441,993.65 yuan) , mainly due to the increase in cash flow paid for the purchase of goods (chips and other inventories decreased year-on-year). This includes some technology outsourcing.
As of yesterday's close, the market value of Horn Electric has fallen by about 30% from its highest point this year.